Muhammad Nazim (Chartered Accountant) (86 Points)
08 September 2011Dear friend please give me your openion
Capital of MR A 500000.00
Unsecured loan 200000.00
If Mr A want to increase his capital threw unsecured loan than what will be penalty in income tax act as well as other act
Now Mr A show his capital in the balance sheet as (own capital 500000.00 and unsecured loan 200000.00) Rs.700000.00 with out showing unsecured loan
C.A SHASHANK GOYAL
(Chartered Accountant)
(362 Points)
Replied 08 September 2011
Hi , I am of the opinion that company want to convert the loan taken by company to personal loan and then to take it as capital , and the consequences of that will be that interest paid on such loan will not be deductible under the provisions of income tax act .
Plz respond if any other compliance to be seen .
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